Documents required for an international sale can vary significantly from transaction to transaction, depending on the destination and the product being shipped. At a minimum, there will be two documents: the invoice and the transport document. The buyer will usually provide the seller with a list of documents needed to get the goods into his country as expeditiously and inexpensively as possible. documents used and needed in International trade fall into several categories, as:
The Certificate of Origin is required by the custom authority of the importing country for the purpose of imposing import duty. It is usually issued by the Chamber of Commerce and contains information like seal of the chamber, details of the good to be transported and so on.
Transport Document is also known as Multimodal Transport Document, and is used when goods are transported using more than one mode of transportation. In the case of multimodal transport document, the contract of carriage is meant for a combined transport from the place of shipping to the place of delivery
A Bill of Exchange is a special type of written document under which an exporter ask importer a certain amount of money in future and the importer also agrees to pay the importer that amount of money on or before the future date.
Also known as Insurance Policy, it certifies that goods transported have been insured under an open policy and is not actionable with little details about the risk covered.
Certificate of Inspection is a document prepared on the request of seller when he wants the consignment to be checked by a third party at the port of shipment before the goods are sealed for final transportation.
The Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific performance of the contract or an injunction. The following are the key elementd which must be taken into account when drawing up a contract.
1. Contract date
2. Indentication of the parties
3. Goods: the following information have included in the contract: a) Tyoe and quuality of the goods b) Quantity of the goods. c) Price 4. Packing arrangements
5. Transportation arrangements: Information needed includes: a) Name of the acrrier b) Type of storage required c) Notice provisions d) Shipping time
6. Cost and charges a) Duties and taxes b)Insurance costs c) Handling and transport d) Terms defined e) Insurance
7. Payment
8. Import documentation
9. Inspection rights
10. Warranty provisions
11. Indemnity
12. Enforcement and remedies a) Time b) Modification of contract c) Cancellation d) Contingencies e) Governing law f) Choice of forum g)Arbitratio provisions h) Severability
Purchases and sales documents
refers to a business or organization attempting for acquiring goods or services to accomplish the goals of the enterprise. Though there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations.
What´s a purchase order? (PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer.
There are various trade finance facilities that almost every financial institution allow to businessmen against such purchase order such as:
Before Shipment credit facility
Post Shipment credit facility
Trade Finance facility
Foreign Bill Purchase credit facility
Bill retirement credit facility
The Pro- Forma invoice
is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. In foreing trade, a pro forma invoice is a document that states a commitment from the seller to provide specified goods to the buyer at specific prices. It is often used to declare value for customs.
Commercial Invoice
Is a document used in foreing trade. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders.
Although there is no standard format, the document must include a few specific pieces of information such as the parties involved in the shipping transaction, the goods being transported, the country of manufacture, and the Harmonized System code for those goods. A commercial invoice must also include a statement certifying that the invoice is true, and a signature.
The funtions:
1. It is a bill or record of trasactions between seller and buyer
2. Is the basis for foreing customs' identification, classification, duty of entre of the goods.
3. Confirms the value of goods
Consular Invoice
Certification by a consul or government official covering an international shipment of goods. A consular invoice, obtained from the consul of the importing country at the point of shipment, insures that the exporter's trade papers are in order and the goods being shipped do not violate any laws or trade restrictions. Forms are purchased from the Consul of the importing country and as many as six copies must be completed.
Other important documents
Packing list and specification: Itemized list of articles usually included in each shipping package, giving the quantity, descrption and weight of the contents Prepared by the shipper and sent to the consignee for accurate tallying of the delivered goods. Also called bill of parcels, packing slip, or unpacking note.
Weight note: a document that shows the weight of goods when they are removed from a ship or aircraft.
Blacklist certificate: A directory of individuals, businesses, or organizations to avoid. For example, companies that have been found to cheat on government contracts may be placed on a blacklist to keep them from winning additional contracts.
Packing List: Also known as packing specification, it contain details about the packing materials used in the shipping of goods. It also include details like measurement and weight of goods.
International transportation containers
An intermodal container (also container, freight container, ISO container , shipping container, hi-cube container, box, conex box and sea can) is a standardized reusable steel box used for the safe, efficient and secure storage and movement of materials and products within a global containerized intermodal freight transport system. "Intermodal" implies that the container can be moved from one mode of transport to another without unloading and reloading the contents of the container. Lengths of containers, which each have a unique ISO 6346 reporting mark, vary from 8-foot (2.438 m) to 56-foot (17.07 m) and heights from 8-foot (2.438 m) to 9 feet 6 inches (2.9 m). There are approximately seventeen million intermodal containers in the world of varying types to suit different cargoes.Aggregate container capacity is often expressed in twenty- foot equivalent units (TEU / teu) which is a unit of capacity equal to one standard 20 × 8 ft (6.10 × 2.44 m) (length × width) container.
Specific purpose containers.
Open tops have the same external dimensions and doors as normal containers, but differ by having a removable tarpaulin cover instead of a roof. This allows carriage of large or awkwardly shaped objects that won’t fit into a normal container. Sizes – 20ft or 40ft
Flatracks are constructed of a strong self supporting base with either fixed or foldable ends. This allows large or long objects (e.g. pipes) to be laid on the base and either strapped or welded in place. An ideal platform for mounting mobile plant (Compressors, pumps etc). Sizes – 20ft or 40ft
Bolsters are similar to flatracks but without side or end walls. They are used in a similar way as flatracks. Bolsters can be used as farm bridges as they are designed to carry the payload while only being supposrted at the corners. Sizes – 20ft or 40ft
Specific cargo containers 1. Mechanically refrigerated container2. Refrigerated container3. Tank container4. Dry bulk container
Documents in International Transports
Transport documentation is needed to provide instructions to the carrier on what should be done with the goods. They can be used to pass responsibility for, and sometimes ownership of, the goods during their journey Bill of Lading is a document issued by carrierto a shipper, acknowledging that specified goods have been received on board as cargo for convenyance to a named place for delivery to the consignee who is usually identified. A thoroughbill of lading involves the use of at least two different modes of transport from road, rail, air, and sea. The term derives from the verb "to lade" which means to load a cargo onto a ship or other form of transportation
Straight bill of lading
In this importer/consignee/agent is named in the bill of lading, it is called straight bill of lading. It is a document, in which a seller agrees to use a certain transportation to ship a good to a certain location, where the bill assigned to a certain party. It details to the quality and quantity of goods
A clean bill of lading states that the cargo has been loaded on board the ship in apparent good order and condition. Such a BL will not bear a clause or notation which expressively declares a defective condition of goods and/or the packaging.
Bearer bill of lading
This bill states that delivery shall be made to whosoever holds the bill. Such bill may be created explicitly or it is an order bill that fails to nominate the consignee whether in its original form or through an endorsement in blank.
Airway Bill
Is the most important document issued by a carrier either directly or through its authorised agent. It is a non-negotiable transport document. It covers transport of cargo from airport to airport. By accepting a shipment an IATA cargo agent is acting on behalf of the carrier whose air waybill is issued. The air waybills show:
the carrier's name
its head office address
its logo
the pre printed eleven digit air waybill number
What´s Master and House Air Wiybills? The freight forwarder may consolidate the consignments of several independent shippers that are intended for the same airport of destination and dispatch them together under one air waybill (AWB) issued by the carrier, known as master air waybill (MAWB), with a cargo manifest detailing such consignments attached to the MAWB. The freight forwarder in turn issues to each shipper its own AWB, known as a house air waybill (HAWB) or freight forwarder's waybill.
Road Waybills and rail waybills
The road waybill or rail waybill (rail consignment note) serves as a receipt for goods and an evidence of the contract of carriage, but it is not a document of title to the goods.
The original road waybill or rail waybill may or may not be marked as "original", as such the waybill(s) presented to the bank are accepted as the original.
Summary Scoring Rubric
Selection and phrasing of information from the reading
Students performance
2
The writer includes most of the relevant information from the reading. Very few irrelevant details or no writer’s personal comments are included in the summary. He/she paraphrases all the information taken from the reading.
1.5
Some irrelevant or inaccurate information is included in the summary. The writer includes some personal comments about the topic. Most of the information from the reading is paraphrased, but few parts of the summary may be copied from the reading.
1
Irrelevant or inaccurate information is included in most of the summary. The writer’s opinion is reflected in most parts of the summary. Several parts of the summary are copied from the reading.
0.25
Only irrelevant or inaccurate information from the reading is included in the summary. The summary is the writer’s opinion about the topic of the reading. Most or all the summary is copied from the reading.
X
Language
1.5
The text has very few minor errors of vocabulary, spelling, punctuation or grammar.
1
The text has several errors of vocabulary, spelling, punctuation or grammar, but they do not impede text comprehension.
X
0.5
The text has numerous errors of vocabulary, spelling, punctuation or grammar that impede its comprehension frequently.
0
The text shows a lack of control of vocabulary, spelling, punctuation or grammar.
Documents needed in International Trade
Documents required for an international sale can vary significantly from transaction to transaction, depending on the destination and the product being shipped. At a minimum, there will be two documents: the invoice and the transport document. The buyer
will usually provide the seller with a list of documents needed to get the goods into his country as expeditiously and inexpensively
as possible.
documents used and needed in International trade fall into several categories, as:
The Certificate of Origin is required by the custom authority of the importing country for the purpose of imposing import duty. It is usually issued by the Chamber of Commerce and contains information like seal of the chamber, details of the good to be transported and so on.
Transport Document is also known as Multimodal Transport Document, and is used when goods are transported using more than one mode of transportation. In the case of multimodal transport document, the contract of carriage is meant for a combined transport from the place of shipping to the place of delivery
A Bill of Exchange is a special type of written document under which an exporter ask importer a certain amount of money in future and the importer also agrees to pay the importer that amount of money on or before the future date.
Also known as Insurance Policy, it certifies that goods transported have been insured under an open policy and is not actionable with little details about the risk covered.
Certificate of Inspection is a document prepared on the request of seller when he wants the consignment to be checked by a third party at the port of shipment before the goods are sealed for final transportation.
The Contract
A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific performance of the contract or an injunction. The following are the key elementd which must be taken into account when drawing up a contract.
1. Contract date
2. Indentication of the parties
3. Goods: the following information have included in the contract:
a) Tyoe and quuality of the goods
b) Quantity of the goods.
c) Price
4. Packing arrangements
5. Transportation arrangements: Information needed includes:
a) Name of the acrrier
b) Type of storage required
c) Notice provisions
d) Shipping time
6. Cost and charges
a) Duties and taxes
b)Insurance costs
c) Handling and transport
d) Terms defined
e) Insurance
7. Payment
8. Import documentation
9. Inspection rights
10. Warranty provisions
11. Indemnity
12. Enforcement and remedies
a) Time
b) Modification of contract
c) Cancellation
d) Contingencies
e) Governing law
f) Choice of forum
g)Arbitratio provisions
h) Severability
Purchases and sales documents
refers to a business or organization attempting for acquiring goods or services to accomplish the goals of the enterprise. Though there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations.
What´s a purchase order?
(PO) is a commercial document issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services the seller will provide to the buyer.
There are various trade finance facilities that almost every financial institution allow to businessmen against such purchase order such as:
- Before Shipment credit facility
- Post Shipment credit facility
- Trade Finance facility
- Foreign Bill Purchase credit facility
- Bill retirement credit facility
The Pro- Forma invoiceis a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. In foreing trade, a pro forma invoice is a document that states a commitment from the seller to provide specified goods to the buyer at specific prices. It is often used to declare value for customs.
Commercial Invoice
Is a document used in foreing trade. It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders.
Although there is no standard format, the document must include a few specific pieces of information such as the parties involved in the shipping transaction, the goods being transported, the country of manufacture, and the Harmonized System code for those goods. A commercial invoice must also include a statement certifying that the invoice is true, and a signature.
The funtions:
1. It is a bill or record of trasactions between seller and buyer
2. Is the basis for foreing customs' identification, classification, duty of entre of the goods.
3. Confirms the value of goods
Consular Invoice
Certification by a consul or government official covering an international shipment of goods. A consular invoice, obtained from the consul of the importing country at the point of shipment, insures that the exporter's trade papers are in order and the goods being shipped do not violate any laws or trade restrictions. Forms are purchased from the Consul of the importing country and as many as six copies must be completed.
Other important documents
Packing list and specification:Itemized list of articles usually included in each shipping package, giving the quantity, descrption and weight of the contents Prepared by the shipper and sent to the consignee for accurate tallying of the delivered goods. Also called bill of parcels, packing slip, or unpacking note.
Weight note:
a document that shows the weight of goods when they are removed from a ship or aircraft.
Blacklist certificate:
A directory of individuals, businesses, or organizations to avoid. For example, companies that have been found to cheat on government contracts may be placed on a blacklist to keep them from winning additional contracts.
Packing List:
Also known as packing specification, it contain details about the packing materials used in the shipping of goods. It also include details like measurement and weight of goods.
International transportation containers
An intermodal container (also container, freight container, ISO container , shipping container, hi-cube container, box, conex box and sea can) is a standardized reusable steel box used for the safe, efficient and secure storage and movement of materials and products within a global containerized intermodal freight transport system. "Intermodal" implies that the container can be moved from one mode of transport to another without unloading and reloading the contents of the container. Lengths of containers, which each have a unique ISO 6346 reporting mark, vary from 8-foot (2.438 m) to 56-foot (17.07 m) and heights from 8-foot (2.438 m) to 9 feet 6 inches (2.9 m). There are approximately seventeen million intermodal containers in the world of varying types to suit different cargoes.Aggregate container capacity is often expressed in twenty- foot equivalent units (TEU / teu) which is a unit of capacity equal to one standard 20 × 8 ft (6.10 × 2.44 m) (length × width) container.
Specific purpose containers.
Open tops have the same external dimensions and doors as normal containers, but differ by having a removable tarpaulin cover instead of a roof. This allows carriage of large or awkwardly shaped objects that won’t fit into a normal container. Sizes – 20ft or 40ft
Flatracks are constructed of a strong self supporting base with either fixed or foldable ends. This allows large or long objects (e.g. pipes) to be laid on the base and either strapped or welded in place. An ideal platform for mounting mobile plant (Compressors, pumps etc). Sizes – 20ft or 40ft
Bolsters are similar to flatracks but without side or end walls. They are used in a similar way as flatracks. Bolsters can be used as farm bridges as they are designed to carry the payload while only being supposrted at the corners. Sizes – 20ft or 40ft
Specific cargo containers
1. Mechanically refrigerated container2. Refrigerated container3. Tank container4. Dry bulk container
Documents in International Transports
Transport documentation is needed to provide instructions to the carrier on what should be done with the goods. They can be used to pass responsibility for, and sometimes ownership of, the goods during their journeyBill of Lading is a document issued by carrierto a shipper, acknowledging that specified goods have been received on board as cargo for convenyance to a named place for delivery to the consignee who is usually identified. A thoroughbill of lading involves the use of at least two different modes of transport from road, rail, air, and sea. The term derives from the verb "to lade" which means to load a cargo onto a ship or other form of transportation
Straight bill of lading
In this importer/consignee/agent is named in the bill of lading, it is called straight bill of lading. It is a document, in which a seller agrees to use a certain transportation to ship a good to a certain location, where the bill assigned to a certain party. It details to the quality and quantity of goodsA clean bill of lading states that the cargo has been loaded on board the ship in apparent good order and condition. Such a BL will not bear a clause or notation which expressively declares a defective condition of goods and/or the packaging.
Bearer bill of lading
This bill states that delivery shall be made to whosoever holds the bill. Such bill may be created explicitly or it is an order bill that fails to nominate the consignee whether in its original form or through an endorsement in blank.Airway Bill
Is the most important document issued by a carrier either directly or through its authorised agent. It is a non-negotiable transport document. It covers transport of cargo from airport to airport. By accepting a shipment an IATA cargo agent is acting on behalf of the carrier whose air waybill is issued.The air waybills show:
What´s Master and House Air Wiybills?
The freight forwarder may consolidate the consignments of several independent shippers that are intended for the same airport of destination and dispatch them together under one air waybill (AWB) issued by the carrier, known as master air waybill (MAWB), with a cargo manifest detailing such consignments attached to the MAWB. The freight forwarder in turn issues to each shipper its own AWB, known as a house air waybill (HAWB) or freight forwarder's waybill.
Road Waybills and rail waybills
The road waybill or rail waybill (rail consignment note) serves as a receipt for goods and an evidence of the contract of carriage, but it is not a document of title to the goods.
The original road waybill or rail waybill may or may not be marked as "original", as such the waybill(s) presented to the bank are accepted as the original.
Summary Scoring Rubric
http://www.gatewaycontainersales.com.au/containers_special_purpose.asp and others.
TOTAL SCORE: 1.25/ 3.5